The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-04-05
TAXATION OF BANK SHARES.
The United States Supreme Court Holds
that the New York Law Is Valid.
Not Greater than That Assessed ON Sim
liar Property in Individual Hands.
NATIONAL BANK SHARES.

The Supreme Court Afirms the Validity of
the New York Taxation Act.
WASHINGTON, April A decision was
dered by the United States Supreme Court to-
day in the important bank-tax case entitled the
Mercantile National Bank of the city of New
York against the Mayor, aldermen and common
atty OF the city of New York, George W. Nc
Lean. receiver of taxes. This is one of thirty
five suits brought by the national banks of the
city of New York against the municipal authori-
ties of that city to restrain the collection of
taxes assessed upon the shares of stock of said
banks. The question raised by the is
whether or not the system. of laws enforced IN
the State of New York is in opposition to Sec.
52l9 of the Revised Statutes of the United
States, which requires that the taxation of
shares of national banks ''shal not be at a
greater rate than is assessed upon other moneyed
capital in the hands of individual citizens of said
State" This court answers that question in
the negative, and afir1ns the decree of the TT
below in favor of the State.
The court is of opinion, first that the mode
of taxation adopted by the State of New York in
reference to its corporations, does not operate
in such way as to make the tax assessed upon
shares of national banks greater in rate than
that imposed upon other moneyed capital in the
hands of individual citizens; second, that the
mode of taxing trust companies does not create
the inequality which the appellant alleges; third.
that deposits in savings banks constitute mon
eyed capital in the hands of individuals" within
the terms of any definition which be given
to that phrase, but they are not within the
meaning of the act of Congress in such sense as
to require that, if they exempted from taxa
ton, shares of stock in national banks must
thereby a SO be exempted from taxation. How
ever larg may be the amount of moneyed cap
ital in the hands of individuals in the shape of
deposits in savings banks as now organized,
which the policy of the State exempts from tax
alton for its own purposes. that exemption can
not affect a rule for taxation of shares in
national bVks, provided they are taxed at rate
not greater than other moneyec capital in the
hands of individual citizens otherwise subject to
taxation; fourth, that consequen tly appellant is
not entitled to the relief prayed for. The de-
cree of the Circuit Court is affirmed. Opinion
by Justice Matthews ] .stice Blatchford not
participating
This is very important decision TO the State
of New York, as taxes to the amount of more
than So, 600. 600 are involved, and the national
bank stock affected by it amounts, at par value,
to more than $50 000, 900. A similar decision was
rendered in the case of the National Newark
Banking Company against the Mayor and Com
mon Council of the city of Newark, n. j.
A decision was also rendered by the court to-
day in the case of James C. Fargo, president etc.
We. VIM. c. Stevens, Auditor-general OF the State
of Michigan; in error to the Supreme Court of
| Michigan. The question presented by this case
is the constitutionality of act of the Michigan
| Legislature, passed June 5. 1888, entitled ian
| act to provide for the taxation of persons, CO.
| partnerships, associations, car-loaning campa-
mics and fastfreght lines engaged In the business
of running cars over any of the railroads of this
| State and rot being exclusively the property of
any railroad company paying taxes their
| gross receipts" The State of Mich gan, by vir-
| tue of this law, endeavored to collect tax from
an express company running cars into and
| out of that State with express matter
| and fast fire. light, but not owning any property
within the jurisdiction of the State. This court
| holds that the act of the Michigan Legislature
above referred to is unconstitutional, inasmuch
| as it is regulation of commerce among the
| States, the power to make which is withheld
from the States. The decree of the Supreme
Court of Michigan is reversed, with costs. and
the case remanded for further proceedings in
conformity with the opinion of this court. Opin
| ion by Justice Miller.
A decision was also rendered in the municipa
| bond case of the town of Concord, Illinois,
plaintiff in error, against Sylvia j. Robinson; in
error to the United States Circuit Court for the
| Markham district of Illinois This is a snit ,nor
certain bonds issued by the town OF Concord t.
aid in the construction Of the Chicago. Danvills
& Vincennes railroad. The court holds that tn.
bonds are not valid obligations of the town, not
withstanding the fact that the defendant in
error purchased them before maturity without
notice of any defense thereto. The judgment il
reversed, with directions to enter judgment fo
the defendant Opinion by Justice Harlan.